5.2.7 Dluh vůči penězům

What obstacles are standing in the way of the economy’s evolution? One of them is the fallacy of the fiat national debt problem. When we allude to the money produced by the national budget using phrases like “the national debt” and “taxpayer money,” we hide the fact that there wouldn’t be any money absent the “debt” of the federal government. Today’s major currencies are all sovereignly issued and self-sovereign. The national govt, which is the ultimate source of these funds, is the reason why banks are able to grant credit, even if the vast majority of the total amount of money is created through bank debt. Another way to put it is that the economy is made up of two money circuits: the public money circuit and the private money circuit, both of which ultimately have public beginnings. When there is an economic downturn, the “supply” of private capital declines. This shortfall must be composed by the public funds circuit in order for the economy to maintain its current size. This rebalancing is referred to as a “federal deficit.”